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A Calgary fiRm Is Considering a New Project Which Requires

question 319

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A Calgary firm is considering a new project which requires the purchase of $370,000 of new equipment. The net present value of the project is $67,000. The price-earnings ratio of the project
Equals that of the existing firm. What will the new market value per share be after the project is
Implemented given the following current information on the firm? A Calgary firm is considering a new project which requires the purchase of $370,000 of new equipment. The net present value of the project is $67,000. The price-earnings ratio of the project Equals that of the existing firm. What will the new market value per share be after the project is Implemented given the following current information on the firm?   A)  $11.70 B)  $12.19 C)  $12.49 D)  $13.01 E)  $13.13


Definitions:

Rigid and Reactive

Describes a tendency or approach in organizations to be inflexible and to respond rather than anticipate change.

People

The human resources of an organization.

Change

The transformation or modification of an organization and/or its stakeholders.

Diagnostic Activities

Tasks or processes undertaken to identify problems, analyze causes, and determine solutions in various contexts.

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